economics and automobiles

This week (and today as well) we see the impending the bankruptcy of General Motors. It brings the country's focus back to the automakers and (in my opinion more importantly) how both GM and Chrysler are currently and for the foreseeable future subject to the dictates of the government. I mean this as even moreso than in the past (emission standards, safety standards, etc.), where the government will be telling these companies what kind of cars to make and maybe even how many. This is not a situation we as a country want to see. This shows the difference between the market economy of the past and the communist (government-run) economy we (by all indications) are moving towards. If anyone thinks this cannot happen hasn't been paying attention. Any automobile made today for driving in the United States needs to meet safety, emission, and fuel efficiency standards. We are being regulated more and more each day.

There may already be some indications of our government exerting its influence on the automakers. One is currently being looked at by a blogger on Redstate (just one of multiple blogs I read), as to whether or not certain Chrysler dealers were 'closed' based on which party they supported by monetary donations. Of course denials abound from Chrysler and the government that this never took place, however, when you look at which dealerships were closed, how well they were doing, and add in their political contributions, the 'appearance of impropriety' begins to show. Now if the implication is true, it's not just government influence on an industry, it's punishment for your political beliefs, and a 'back door' way to shut down opposition without directly attacking the first amendment. This should increase our vigilance, if we care about protecting our way of life.

The other indication comes in the form of oil and gas prices. We're in a down economy (recession or maybe the beginnings of depression depending on your point of view), and yet oil and gas prices are going up. You could argue it's a sign the economy's improving, but at this point nothing else indicates that. If you believe in conspiracies, you could argue the government is raising the oil and gas prices on purpose to drive people out of their current cars. What would they get? Why the 'new' fuel efficient and 'green' cars that will be made by the post-bankruptcy GM. That's if you believe in conspiracies.

I will continue to watch what goes on with interest. The automobile industry will, in this case, be a leading indicator of the future of our economy, government, and society. Admittedly, I will be watching with a certain degree of apprehension. If what we've seen so far is any indication, we can only look forward to more and more of a communist-style economy run by the government.